Flour Mills Of Nigeria Acquires 71.69% Stake Worth N80bn In Honeywell Flour Mills

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    Flour Mills of Nigeria (FMN) on Monday said it has signed an agreement to acquire 71.69per cent in Honeywell Group’s portfolio company, Honeywell Flour Mills Plc (HFMP).

    The two flour processing companies in a joint statement noted that the transaction aimed to create a strong national champion for Nigeria to further enhance food security.

    The statement stressed that Honeywell Group Limited has agreed to sell 71.69per cent stake or deal worth N80 billion in Honeywell Flour Mills to Flour Mills of Nigeria Plc.

    The statement said: “For the proposed combination of FMN through its affiliates and Honeywell Flour Mills Plc. (HFMP), a portfolio company of HGL. At a total enterprise value of N80 billion, HGL will dispose of a 71.69per cent stake in HFMP to FMN.”

    The statement noted that the proposed combination is subject to approval from the appropriate regulators.

    Other highlights of the proposed transaction include:

    “The final equity price per share payable will be determined based on HFMP’s adjusted net debt and net working capital at the date of completion.

    “The complementary transaction combines FMN’s market-leading offerings that include grain-based foods, sugar, starches, oils, spreads and breakfast cereals with HFMP’s market leading diverse and differentiated range of carbohydrate products.

    “Stakeholders would benefit from the more than 85-year combined track record of FMN and HFMP and their shared goal of making affordable and nutritious food available to Nigeria’s population.

    “The scale of the transaction provides employees of the consolidated company with more career development opportunities in a larger organisation, with the potential to create more jobs in the economy as it will have more brands and categories, and a larger and more geographically diverse footprint.

    “Nigeria presents vast opportunities, particularly in light of the country being the largest market on the continent as well as a signatory of AfCFTA.

    “HFMP’s listing will be retained for the foreseeable future. Minority shareholders of HFMP will be treated fairly and in line with capital market regulation. Further information will be provided within the required channels and timeframes.”

    Honeywell Group Limited Managing Director, Obafemi Otudeko in a statement said: “Today’s announcement is in line with the evolution of Honeywell Group and our vision of creating value that transcends generations.

    “For over two decades, we have supported Honeywell Flour Mills to build a strong business with a production capacity of 835,000 metric tonnes of food per annum. Following the transaction, Honeywell Group will be strongly positioned to consolidate and expand its investment activities, including as a partner of choice for investors in key growth sectors.”

    Commenting also on transaction, Group Managing Director of Flour Mills of Nigeria, Omoboyede Olusanya in a statement said: “The proposed transaction is aligned with our vision not only to be an industry leader but a national champion for Nigeria.

    “We believe that this will create an opportunity to combine the unique talents of two robust businesses. As a result, we will have a better-rounded and more comprehensive skill set available to us as a combined diversified food business, thus enabling us to better serve our consumers, customers and other stakeholders, whilst providing employees with access to broader opportunities.”

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